HMRC update launching soon could see costs soar for petrol, diesel and electric car owners

Drivers are being warned of costs that could soar in the coming weeks and months as the price of fuel continues to skyrocket in response to the conflict in the Middle East.The global price of oil remains above $110 (£82) as the United States and Israel continue strikes against Iran, prompting fears around the skyrocketing price of petrol and diesel.The conflict in Iran will likely continue for the foreseeable future, especially as US President Donald Trump promises to escalate the conflict by sending more troops to the Middle East.Given that Iran has closed access to the Strait of Hormuz, which carries around one-fifth of the world's supply of oil, prices have risen dramatically since the killing of Iran's Supreme Leader Ayatollah Ali Khamenei at the end of February. TRENDING Stories Videos Your Say Data from RAC Fuel Watch shows that drivers are currently paying 144.51p per litre for petrol, while diesel motorists are forking out an average of 166.24p.In the three weeks following strikes on Tehran, petrol prices in the UK have jumped by 11.7p, while diesel drivers have witnessed fuel costs soar by 16.8 per cent, or 23.9p per litre.Simon Williams, head of policy at the RAC, warned that prices are likely to rise further over the coming weeks, potentially hitting 150p for petrol and £1.80 for diesel by Easter in early April.Alongside high prices at the pumps, many motorists with company cars could see prices soar, based on new rates from HM Revenue and Customs.HMRC releases new advisory fuel rates (AFRs) four times per year, with the most recent update coming at the start of March.These rates are used to reimburse employees for business travel in their company cars, or if a business needs employees to repay the cost of fuel used for private travel.Petrol and diesel rates are calculated using the latest fuel prices from the Department for Energy Security and Net Zero (DESNZ), and with costs soaring, the next update could see rates hiked.GB News has rounded up the most recent update to the advisory fuel rates ahead of the next change, which is currently scheduled for June 1, 2026.LATEST DEVELOPMENTSStonehenge tunnel scrapped by Labour despite £180MILLION being spent - 'Huge blow'Parking operator NCP collapses and places 340 car parks at risk - full list of potential closuresDrivers ditch big brands for cheaper Chinese models as net zero plans favour foreign carsAdvisory fuel rates per mile from March 1, 2026PetrolEngines up to 1,400cc - 12pBetween 1,401cc and 2,000cc - 14pOver 2,000cc - 22pDieselEngines up to 1,600cc - 12pBetween 1,601cc and 2,000cc - 13pOver 2,000cc - 18pElectricHome charger - 7pPublic charger - 15pLiquefied Petroleum Gas (LPG)Engines up to 1,400cc - 10pBetween 1,401cc and 2,000cc - 11pOver 2,000cc - 19p Our Standards: The GB News Editorial Charter